Buying land - Diesel Forum

AggiePSD · 07-08-2008, 10:20 PM

We're moving at the end of the month and are about to sign on a small house and 60 acres of farmland. I'm worried that a year from now it will be worth half of what I'm about to pay for it. I'm not to confident that land is a good investment right now and wanted to know what you guys think.

Land has been a bad investment before in times of economic trouble, and frankly, I'm really concerned what the next year will bring.

SIC-E · 07-08-2008, 10:43 PM

barring a nuke plant being built next door, real estate always goes up! just a matter of how long ya gotta wait. if yer gonna be there awhile, relax and enjoy. they aint makin any more or it. its the big mcmansion on a postage stamp lot in a trendy ca location that can take a hit for long period. smaller house on larger land without temp price inflator is bound to be good if dont turn around and wanna leave in a year. jmho, good luck with the move!

edub32 · 07-09-2008, 12:17 AM

I say go for it. A plot that big will be a good investment.

checkthisout · 07-09-2008, 12:24 AM

Quote:

Originally Posted by edub32

I say go for it. A plot that big will be a good investment.

Subdivide.

Bring in a couple of old FEMA trailers and rent them out.

Hook'em Horns! · 07-09-2008, 07:08 AM

Quote:

Originally Posted by checkthisout

Subdivide.

Bring in a couple of old FEMA trailers and rent them out.

Dang, I just moved in and already...there goes the neighborhood!

JIM_C · 07-09-2008, 08:35 AM

Quote:

Originally Posted by checkthisout

Subdivide.

Bring in a couple of old FEMA trailers and rent them out.

No way. Elbow room is good.
What makes you think the price will go down in the near future?

reba · 07-09-2008, 10:04 AM

Simple rules:

Buy what you want and can afford.

Buy what you can afford and want.

If it isn't what you want don't buy it.

If you can't afford it don't buy it.

These rules apply to land, houses, trucks, guns, art and almost any other things except dogs.

Good dogs are priceless.

OMCUSNR · 07-09-2008, 10:56 AM

Quote:

Originally Posted by AggiePSD

We're moving at the end of the month and are about to sign on a small house and 60 acres of farmland. I'm worried that a year from now it will be worth half of what I'm about to pay for it. I'm not to confident that land is a good investment right now and wanted to know what you guys think.

Land has been a bad investment before in times of economic trouble, and frankly, I'm really concerned what the next year will bring.

If you're worried about "next year", you're going about it all wrong. Land is a long term investment - think minimum 5 years. Its different than "flipping houses", which is more speculation, and can be either good or bad.

If you don't plan on being on 60 acres for more than 10 years, its not the right place for you now.

OMC

AggiePSD · 07-09-2008, 03:15 PM

I plan on being there for a while, at least 10 years. I'm not worried about the long term, I know it will go up in price. I'm worried about the short term and my belief we're headed for a pretty serious recession/depression/whatever you want to call it here in the pretty near future. I would really kick myself if I could buy it next year this time for 60% of the price. It happened in the 80's, it could happen again. That's what I"m worried about.

**bugman** · 07-09-2008, 03:19 PM

If it is a good buy now and it is what you want then go for it. Possibly the price of it next year may drop but then again somebody else may buy it before you do and then where are you? Also what happens if prices start to go back up? Are you prepared to pay more for it if you have to? As was said land or a home is a long term investment.

Jim

clamgulch · 07-09-2008, 03:58 PM

Then why buy it? Real estate prices are dropping like a rock all over the place. Why anyone would think that now is a good time to invest in it is totally beyond me. We're about ten cents and one hair trigger short of a total economic collapse and the fact is, NOBODY IS DOING ANYTHING TO FIX THAT. So where are we going to end up? In a total economic collapse. Duh...

Here's a far better option. Work out a lease option with the owner where you win, no matter what. Don't moan to me about the "tax write off" of shelling out 30 grand so you can pay three grand less in taxes either. You're so uncertain of this "deal" that you have buyers remorse already. DON'T DO IT.

There's no better time than now to rent...it's money way ahead of anything you can afford. You can get a far nicer place to live for the same amount of money, so don't buy into the "american dream" hype.

AK_Gandy · 07-09-2008, 05:44 PM

Quote:

Originally Posted by AggiePSD

I would really kick myself if I could buy it next year this time for 60% of the price. It happened in the 80's, it could happen again. That's what I"m worried about.

How much would you kick yourself if it was 40% higher next year?

The truth of the matter is, we are currently in a once in a lifetime situation. Low prices (housing/land) AND low interest rates (historically).

A recent quote I read really struck home.

I can't recall now who said it but, when asked how he became so rich his answer was.............."By selling too soon."

His point of course is that you cannot perfectly time the market. What you have to do is to be satisfied that you sold for more than you bought.

If you're going to keep that land even 5-7 years..........and it doesn't go up in price.........then we will be in the middle of another Great Depression and there will be a lot bigger problems to worry about.

As long as you are comfortable that your livelihood is fairly secure (loss of income would be the only big detriment in my book) then it would be my opinion to go for it.

Good luck.

**action4478** · 07-09-2008, 07:39 PM

I look at it this way ,,,I 've never regretted anything I have purchased in my life ,,but many times have regretted the things I didn't ...No matter what , you will still have 60 acres ...

It depends on what you are willing to live with....

checkthisout · 07-10-2008, 12:43 AM

Quote:

Originally Posted by JIM_C

No way. Elbow room is good.
What makes you think the price will go down in the near future?

Yeah but he'll need to be able to afford a CAT for making motorcycle tracks and a Bass pond.

roofeditor · 07-10-2008, 07:25 AM

Quote:

Originally Posted by AK_Gandy

How much would you kick yourself if it was 40% higher next year?

The truth of the matter is, we are currently in a once in a lifetime situation. Low prices (housing/land) AND low interest rates (historically).

A recent quote I read really struck home.

I can't recall now who said it but, when asked how he became so rich his answer was.............."By selling too soon."

His point of course is that you cannot perfectly time the market. What you have to do is to be satisfied that you sold for more than you bought.

If you're going to keep that land even 5-7 years..........and it doesn't go up in price.........then we will be in the middle of another Great Depression and there will be a lot bigger problems to worry about.

As long as you are comfortable that your livelihood is fairly secure (loss of income would be the only big detriment in my book) then it would be my opinion to go for it.

Good luck.

Florida as a whole is starting to slight edge up some. Yes high rise condos up and down the beach are still pulling the market down but that is because a 2000 sqft condo is no way in he)) worth $400 or $500 a foot when they are building them for $100 a foot. In my home town of Satellite Beach not a major income center I saw people pay one million for a 2400 sqft high rise condo and today it sold for $650,000.

Take these silly high-rise condos out of the equation and I say Florida single family homes are edging up not drastically but up is better than down. Miami is still quite soft.

Areas of California are still falling, possibly they should film another series of "flip that house" which is how this all got started.